channel via email newsletters, social media, or personalized offers. Regular interaction keeps your brand at the top of their mind, helping to strengthen the relationship over time.
Of equal importance is to celebrate your customers. Everyone loves a little treat on their special days, and so do your customers. Show your appreciation by celebrating milestones such as anniversaries or birthdays or recognizing their loyalty with special rewards. Sending personalized messages, exclusive discounts, or surprise gifts on these occasions can make customers feel valued.
The benefits of relationship marketing increase customer satisfaction, improve retention rates, enhance word-of-mouth marketing, lead to higher conversion rates, augment collaboration and communication, lead to positive reviews and creating lifelong brand advocates.
Netflix is one of the most popular and successful online streaming platforms in the world, with over 200 million subscribers in 190 countries. The company has built a loyal and engaged customer base by leveraging data and recommendations to create a unique and personalized customer experience. Netflix uses various relationship marketing strategies to achieve this goal, such as: collecting and analysing customer data: Netflix collects a vast amount of data from its customers, such as their viewing history, preferences, ratings, feedback, device type, location, and more. Netflix uses this data to understand customer behaviour, preferences, and needs, and to segment customers into different groups based on their profiles. Netflix also uses data to measure customer satisfaction, retention, and churn rates, and to optimize its pricing, content, and marketing strategies.
Netflix uses sophisticated algorithms and machine learning to provide personalized recommendations to its customers, based on their data and preferences. Netflix recommends content that customers are likely to enjoy, discover, and watch, and also tailors the content thumbnails, descriptions, and trailers to appeal to different customers.
There are different levels of relationship marketing that include Basic Marketing, which is the traditional form of relationship marketing in which a brand works to entice the customer to buy. The focus is on the product or service being sold and how great it is. This is a form of direct selling with no follow-up after purchase and no further communication or feedback requested. This style reels people in with a simple message, price, or promotion. It is a sell for the sake of making money, and nothing more.
Reactive Marketing: At this level of commitment, a brand actively seeks feedback from customers. Whether it is a compliment on social media, complaint, suggestion, customer engagement, or product idea, a business is open to it with a reactive marketing approach. There is some effort to build a relationship with the customer when the situation or opportunity arises. This is not a typical digital marketing technique. It is inbound marketing focused on purchase reactions.
Accountable Marketing is the level of relationship marketing that is about promising and delivering. It continues the buyer’ s journey after purchase and puts a spotlight on customer retention rates and strategies. This involves checking with customers after they purchase and offering related products as they arise. Loyalty programs and rewards programs are also incentive strategies used in accountable marketing. Like a friend calling to see if you need anything, accountable marketing is about having confidence in what you offer and actively providing solutions to problems- sometimes before people know they have them. This is also the time to ask for customer feedback and take the appropriate actions accordingly.
Proactive Marketing is a form of relationship marketing where a brand keeps consistent tabs on its customers to build effective relationships. It’ s not a one-off sale or a temporary interaction. The strategy is very personal. It pays close attention to what people want and uses customer data to understand purchasing behavior. A lot of companies choose email marketing as a way to perform proactive marketing. The data is then used to produce more engaging marketing campaigns. The accumulation of consumer information allows a business to relate to a multitude of situations in an authentic way. One real-world example of proactive marketing is virtual assistants like Alexa. They keep close tabs on what a customer desires and then make suggestions at opportune moments.
Partnership Marketing is a form of relationship marketing with a high level of collaboration. Two businesses work together in a mutually beneficial and promotional relationship towards a common goal. It could be for a specific campaign, product, or set amount of time. It enables both companies to increase brand awareness and improve sales. Partnership marketing is a great strategy for small businesses, startups, and e-commerce companies.
Relationship builders treat customers like life-long partners, become a solutions providers, deliver more service than promised, schedule regular service calls, develop open and honest communication, use the‘ we can’ approach, take responsibility for mistakes made and are allies for the customer’ s business.
Relationship breakers on the other hand simply wait for the problem to develop, focus only on making the sale, over-promise and under-deliver, wait for customers to call, lie or make exaggerated claims, use the“ us versus them” approach, blame somebody else for their mistakes and focus on own personal gain.
Customers appreciate when businesses recognize them as individuals and tailor their messages and offers to their specific interests and needs. For example, Netflix uses data and algorithms to recommend movies and shows that match the tastes and preferences of each user. This makes the user feel understood and valued, and increases the likelihood of them watching more content on the platform.
Customers are more loyal to businesses that make them feel part of something bigger than themselves, such as a social group, a cause, or a movement. Businesses can foster this sense of community by creating platforms and opportunities for customers to interact with each other, share their stories, and support each other. For example, Harley-Davidson has created a loyal fan base of motorcycle enthusiasts who identify themselves as " Harley owners " and participate in various events, clubs, and forums organized by the company.
Remember according to Muhtar Kent, Former CEO of Coca-Cola“ A brand is a promise. A good brand is a trust kept.” Hence relationship marketing is key in building trust in a brand for the badly needed growth.
Joseph Nyutu is the Managing Consultant, Performa Consult Limited. You can commune with him via mail at: Josephnyutu @ gmail. com.